Decrypting Blockchain: Unlocking The Internet Of Value
Are we in a Crypto Bubble? Or, is the hype around Blockchain justified? Ten years ago, at the height of the Great Recession, Satoshi Nakamoto, a pseudonym of a still unknown programmer, proposed a “peer-to-peer transfer of virtual cash without going through a financial institution.” Today, Cryptocurrencies enjoy an estimated market value of $300 billion. Yet Blockchain and Cryptocurrencies still attract plenty of skepticism and controversy.
What to believe? This report will explore how various forces have shaped the current Blockchain landscape. In particular, we will review Blockchain basics, including public and private versions of the system, a fat versus thin protocol, and the potential impact of creating a distributed, decentralized ecosystem. We will review key turning points in the Blockchain ecosystem, examine venture capital and corporate investments in Blockchain startups and analyze the growing interest of large financial institutions and technology companies in this space. We will also look at Blockchain applications today and offer potential Blockchain applications for the future. Finally, we highlight key risks, challenges, limitations of the Blockchain technology and overall ecosystem as it stands today. (Readers would notice that a discussion around ICOs – Initial Coin Offerings – is conspicuously missing from this report. We believe this trend in startups raising capital via ICOs warrants a stand-alone research report, and we will be following up with one shortly).
Since Bitcoin introduced the world to Blockchain, people have increasingly recognized the technology’s potential to decentralize a wide range of institutions. But our research and conversations with various stakeholders suggest the technology is more than just cutting out a central authority or middlemen.
Blockchain is still new. We believe investors and large corporations are still looking for real-world uses beyond Cryptocurrencies. Widespread adoption of Blockchain will likely come from consumers instead of businesses. But we think the future is bright, especially as the technology attracts more investment and innovation.
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